Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

March 29, 2018
REIT Issuer
Ichigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, PresidentInquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

Sale of Retail Asset(Ichigo Burg Omori Building)
Ichigo Investment Advisors (“IIA”), the asset management company of Ichigo Office,decided today to sell a retail asset, the Ichigo Burg Omori Building in Tokyo.
The sale price of the Ichigo Burg Omori Building is 1.4X book value, generating gains
on sale of c. JPY 970 million.
1. Asset Sale Summary
Total appraisal value: JPY 2,970 million
Asset Number
Asset Name

Total sale price: JPY 4,200 million

Z-03Ichigo Burg Omori Building

Asset Type
Date Built
Legal Form of Asset

RetailJune 1, 1968 (Building extension on August 1, 1990)
Trust beneficiary interest in real estate (juekiken)
November 1, 2011 (Ichigo Office merger)
Acquisition Date
March 17, 2006 (Original acquisition date)1
Appraisal Value
JPY 2,970 million
Sale Price2
JPY 4,200 million
3Book Value
JPY 3,098 million
4Gain on Salec. JPY 970 million
Contract Date
March 29, 2018
Transaction Date
March 30, 2018
Closing Date
March 30, 2018
Transaction Method
Sale of trust beneficiary interest in real estate
1Appraisal Value is as calculated by Rich Appraisal Institute Co., Ltd. as of October
31, 2017, and is compliant with the appraisal guidelines of IIA as well as the rules ofThe Investment Trusts Association, Japan.
2Sale Price excludes incidental expenses such as fees and property, city planning, andconsumption taxes.
13Book Value is an estimate based on the most recent book value (October 2017 fiscalperiod), adjusted for expected capital expenditures and depreciation through theClosing Date.
4
Gain on Sale is an estimate calculated as the Sale Price less Book Value and forecast
sale expenses, and is subject to change.
2. Sale Rationale
Ichigo Office continues to execute on its strategy to grow long-term value for Ichigo
Office shareholders by focusing its portfolio on high-quality office assets. Consistent
with this strategy, Ichigo Office is selling this retail asset, in addition to the two retailasset sales announced earlier this month. Ichigo Office is therefore selling a total ofthree non-office assets during the April 2018 fiscal period, and expects to deploy thefunds for growth investments such as asset acquisitions and value-add capex.1
Ichigo Office regularly reviews its portfolio for profitability and determines whether it
is in the best interest of shareholders to continue to own each asset. In this case, Ichigo
Office decided to sell the Ichigo Burg Omori Building based upon anticipated increases
in future maintenance costs and rental outlook for restaurant tenants.
The total sale price is 1.4X book value and 1.4X appraisal value, resulting in gains onsale of c. JPY 970 million.
1For details of the sale of the two retail assets, please refer to the March 16, 2018
release “Sale of Two Retail Assets (Ichigo Sapporo Minami 2 Nishi 3 Building, Ichigo
Daimyo Balcony).”

23. Asset Overview
Asset Name
Form of Ownership
Address
Property Right
Area
Land
ZoningCoverage Ratio
Floor Area Ratio
Property Right
Use
Building
Structure2
Total Floor Area
Date Built
Number of Tenants
Monthly Rental Income1
Tenant Security Deposits1
Leasable Area
Leased Area
Occupancy
Acquisition PriceAppraiser
Appraisal DateValue

Asset Overview
Ichigo Burg Omori Building
Trust beneficiary interest in real estate (juekiken)
1-1-2, 5 Omorikita, Ota-ku, Tokyo
Freehold
1,210.70m2
Retail80%
600%
Freehold
Retail, office
SRC/RC 8 Floors plus 3 Basement Floors
7,411.31m2
June 1, 1968 (building extension on August 1, 1990)
37 (as of February 28, 2018)
JPY 21.922 million (as of February 28, 2018)
JPY 202.593 million (as of February 28, 2018)
5,345.62m2 (as of February 28, 2018)
5,004.84m2 (as of February 28, 2018)
Apr 2016 Oct 2016 Apr 2017 Oct 2017 Feb 2018
92.4%
93.6%
92.8%
92.8%
93.6%JPY 3,218 million
Rich Appraisal Institute Co., Ltd.
October 31, 2017
JPY 2,970 million

1Monthly Rent (including cost of utilities) and Tenant Security Deposits refer to thosestated in the lease agreement.
2
SRC = Steel-Reinforced Concrete, RC = Reinforced Concrete

3Asset Name
Appraisal Value
Appraiser
Appraisal Date

Appraisal Details
Ichigo Burg Omori Building
JPY 2,970 million
Rich Appraisal Institute Co., Ltd.
October 31, 2017
Amount (JPY)

Appraisal Value
Value by Direct
Capitalization Method
IncomeMaximum
Obtainable
Rental Income
Vacancy LossExpenses
Administrativeand MaintenanceExpensesUtility Expenses
Repair Expenses
PM Fees
Leasing
Brokerage Fees
Taxes
Insurance
Premiums
Other Expenses
Net Operating
Income (NOI)
Income on
Investment ofDeposits
Received
CapitalExpenditures
Net Profit
Cap Rate
Value via DCF
MethodNotes
on a DCF valuation, and verified
2,970,000,000 Basedusing a direct capitalization valuation
3,030,000,000
314,149,533
Based on rental income, common area
334,175,444 service income, parking lot income, andother income
20,025,911 Based on long-term vacancy rate
123,231,236
on similar assets and past actual
34,008,000 Basedamounts
on similar assets and past actual
54,343,000 Basedamounts
on engineering reports and similar
9,788,000 Basedassets
on similar assets and past actual
3,911,037 Basedamounts
on the expected turnover rate and1,862,359 Basedtenant acquisition costs for similar assets
18,890,900 Based on FY2017 actual amounts
426,330 Based on FY2017 actual amounts
1,610 Based on materials provided by IIA
190,918,297
1,873,114 Based on a 1.0% investment yieldon engineering reports and similar
22,838,000 Basedassets
169,953,411
Based on transactions of similar assets andcomprehensive assessment of the asset’s
5.6% alocation,
its individual characteristics, andmarket trends
2,950,000,000

Discount Rate

Based on transactions of similar assets and5.5% the yields of financial assets with the asset’s
individual characteristics taken into account

Terminal Cap Rate

5.9% Based on risk-adjusted NOI

4

Value via Cost Approach
Land
Building

Amount (JPY)
2,760,000,000
74.2%
25.8%
Notes

None

5Notes4. Buyer Profile
Name

The buyer, a Japanese operating company, did not provide
consent to disclose its name.

Relationship withIchigo Office or IIA

The buyer does not have any capital, personnel, or business
relationship of note with Ichigo Office or IIA. In addition,
the buyer is not an interested party as defined in theEnforcement Ordinance of the Investment Trust andInvestment Corporation Law or the internal rules of theAsset Management Company.

5. Broker Profile
Name
Address
Representative
Principal Businesses
CapitalEstablishment Date
Relationship with
Ichigo Office or IIA
Brokerage Fee

SMBC Trust Bank Ltd.
1-3-1 Nishi-Shinbashi, Minato-ku, Tokyo
Hidetoshi Furukawa, President & CEO
Trust banking, banking
JPY 87.55 billion (as of December 20, 2017)
February 25, 1986
The broker does not have any capital, personnel, or business
relationship of note with Ichigo Office /IIA. In addition, thebroker is not an interested party as defined in theEnforcement Ordinance of the Investment Trust andInvestment Corporation Law or the internal rules of theAsset Management Company.
The broker did not provide consent to disclose the fee.

6. Settlement Method
Lump-sum payment
7. Use of Sale Proceeds
Ichigo Office will retain the sale proceeds for future use for asset acquisitions andvalue-add capex.
8. Earnings Outlook
The sale is forecast to generate gains on sale of c. JPY 970 million, which will be
retained and used to grow shareholder value through asset acquisitions and value-add
capex. For details of the impact of this sale on April 2018 fiscal period earnings, pleaserefer to today’s announcement “Earnings Forecast Revision for the April 2018 FiscalPeriod.”
For the October 2018 fiscal period, the impact on Ichigo Office’s earnings and dividend
forecast due to the decrease in operating revenue from the sale is minimal and therefore
the forecast is unchanged.

6Portfolio Reference Information
Post-Sale Portfolio
No.
O-02
O-03
O-04
O-05
O-06
O-07
O-08
O-09
O-10
O-11
O-12
O-14
O-15
O-16
O-17
O-18
O-19
O-20
O-21
O-22
O-23
O-24
O-26
O-27
O-28
O-29

Area1

Asset Name
Ichigo Nishisando Building
Ichigo Mita Building
Ichigo Nanpeidai Building
Ichigo Hanzomon Building
Ichigo Hijirizaka Building
Ichigo Shibuya Kamiyamacho Building
Ichigo Akasaka 5 Chome Building
Ichigo Shibakoen Building
Ichigo Ebisu Nishi Building
Ichigo Ginza 612 Building
Ichigo Uchikanda Building
Ichigo Yotsuya 4 Chome Building
Ichigo Tameike Building
Ichigo Jimbocho Building
Ichigo Hakozaki Building
Ichigo Kudan 2 Chome Building
Ichigo Kudan 3 Chome Building
Ichigo Gotanda Building
Ichigo Shin Yokohama Building
Ichigo Minami Ikebukuro Building
Ichigo Nakano North Building
Ichigo Eitai Building
Ichigo Ikejiri Building
Ichigo Nishi Ikebukuro Building
Ichigo Nishi Gotanda Building
Ichigo Kichijoji Building

Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central TokyoCentral Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Central Tokyo
Tokyo Metro Area
Four Major RegionalCities
Four Major RegionalCities
Other Regional Cities
Other Regional Cities
Other Regional Cities
Central Tokyo
Central Tokyo
Four Major RegionalCities

O-34 Ichigo Sakae Building
O-37 Ichigo Marunouchi Building
O-38
O-39
O-42
O-46
O-47

Ichigo Toyamaeki Nishi Building
Ichigo Mirai Shinkin Building
Ichigo Takamatsu Building
Ichigo Kanda Nishikicho Building
Ichigo Akihabara North Building

O-48 Ichigo Sakaisuji Honmachi Building
7

Acquisition
Price2(JPY million)% ofPortfolio3

3,254
2,740
1,920
1,550
1,200
1,505
735
1,100
1,917
1,773
1,140
550
580
1,820
1,150
763
844
5,060
1,816
1,460
764
1,490
2,030
639
765
2,160

1.7
1.4
1.0
0.8
0.6
0.8
0.4
0.6
1.0
0.9
0.6
0.3
0.3
0.9
0.6
0.4
0.4
2.6
0.9
0.8
0.4
0.8
1.1
0.3
0.4
1.1

4,705

2.4

6,710

3.5

1,650
1,158
3,010
2,130
5,500

0.9
0.6
1.61.1
2.9

1,940

1.0

No.
O-49
O-50
O-51
O-52
O-53
O-54
O-55
O-56
O-57
O-58
O-59
O-60
O-61
O-62
O-63
O-64
O-65
O-66
O-67
O-68
O-69
O-70
O-71
O-72
O-73

Area1Asset Name
Ichigo Kanda Ogawamachi Building
Ichigo Hatchobori Building
Ebisu Green Glass
Ichigo Omori Building
Ichigo Takadanobaba Building
Ichigo Omiya Building
Ichigo Sagamihara Building
Ichigo Ofuna Building
Ichigo Sendai East Building
Ichigo Kumamoto Building
Ichigo Jingumae Building
Ichigo Shibuya Dogenzaka Building
Ichigo Hiroo Building
Ichigo Sasazuka Building
Ichigo Nihonbashi East Building
Ichigo Sakurabashi Building
Ichigo Shinkawa Building
Ichigo Kudan Building
Ichigo Higashi Gotanda Building
Axior Mita
Ichigo Higashi Ikebukuro Building
Koriyama Big-i (Office Section)
Ichigo Kawasaki Building
Ichigo Shibuya East Building
Ichigo Ningyocho Building

Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Other Regional Cities
Other Regional Cities
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metro Area
Other Regional Cities
Tokyo Metro Area
Central Tokyo
Central Tokyo
Four Major Regional
CitiesFour Major Regional
CitiesFour Major RegionalCities
Tokyo Metro Area
Tokyo Metro Area
Central Tokyo
Tokyo Metro Area
Four Major Regional
CitiesFour Major Regional
CitiesFour Major Regional
Cities

O-74 Ichigo Nishi Honmachi Building
O-75 Ichigo Hakata Building
O-76 Ichigo Nishiki First Building
O-77
O-78
O-79
O-80

Ichigo Ikenohata Building
Ichigo Ikebukuro East Building
Ichigo Motoazabu Building
Ichigo Otsuka Building

O-81 Ichigo Nagoya Building
O-82 Ichigo Fushimi Building
O-83 Ichigo Nishiki Building
8

Acquisition
Price2(JPY million)
2,210
1,905
5,900
3,850

% ofPortfolio3

1,580
3,430
1,174
2,000
1,840
1,450
7,200
3,650
3,960
4,780
4,700
2,500
2,360
3,190
3,660
1,800
4,570
1,660
1,750
1,350
1,450

1.1
1.0
3.1
2.0
0.8
1.8
0.6
1.0
1.0
0.8
3.7
1.9
2.1
2.5
2.4
1.3
1.2
1.7
1.9
0.9
2.4
0.9
0.9
0.7
0.8

2,190

1.1

1,380

0.7

2,000

1.0

5,130
3,010
1,890
2,740

2.7
1.6
1.0
1.4

3,420

1.82,340

1.2

1,330

0.7

No.

Area1Asset Name

Four Major RegionalCities
Ichigo Shibuya Udagawacho Building
Central Tokyo
Win Gotanda Building
Central Tokyo
Ichigo Hongo Building
Tokyo Metro Area
Oimachi Center Building
Central Tokyo
Subtotal - Office (74 Assets)
Ichigo Fiesta Shibuya Building
Central Tokyo
Ichigo Machida East Building
Tokyo Metro Area
Konami Sports Club Izumi Fuchu
Other Regional Cities
Ichigo Shibuya Bunkamura Dori Building
Central Tokyo
Twicere Yokohama Isogo (Retail Section)
Tokyo Metro Area
Lions Square Kawaguchi
Tokyo Metro Area
Ichigo Shin Yokohama Arena Dori Building Tokyo Metro Area
Ichigo Kamata Building
Tokyo Metro Area
Subtotal - Other (8 Assets)
Total (82 Assets)

O-84 Ichigo Minami Morimachi Building
O-85
O-86
O-87
O-88
Z-02
Z-05
Z-09
Z-10
Z-11
Z-12
Z-13
Z-14

1Acquisition
Price2(JPY million)% ofPortfolio3

1,040

0.5

3,500
3,100
2,300
1,680
178,497
1,970
1,310
1,210
2,400
1,620

1.8
1.6
1.2
0.9
92.7
1.0

2,430
1,700
1,400
14,040
192,537

Central Tokyo refers to Chiyoda, Minato, Chuo, Shinjuku, Shibuya, and Shinagawa
Wards. Tokyo Metro Area refers to Tokyo (excluding the six wards above), Kanagawa,Chiba, and Saitama Prefectures. Four Major Regional Cities refers to Osaka, Nagoya,Fukuoka, and Sapporo.
2Acquisition Price excludes incidental expenses such as consumption taxes and other fees.
Assets O-02 through O-42 (31 assets) and assets Z-02 and Z-05 (2 assets) show theappraisal value as of October 31, 2011.
3% of Portfolio is based upon acquisition price.

90.7
0.6
1.2
0.8
1.3
0.9
0.7
7.3
100.0